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By Caryl Auslander ● June 27, 2022

Local, state, and federal highlights in this week’s memo include:

• Indiana General Assembly Will Tackle Abortion Issues During Special Session
• Gas Price Hikes Put Pressure on Federal and State Governments
• Governor Holcomb's South Shore Line Project Moves Forward
• United Way of Central Indiana Hires DWD Commissioner, Fred Payne, as President and CEO
• Labor Shortages Harming Indiana Dairy and Livestock Industries
• Charitable Giving Hits Record High, but Inflation Draws Down Impact
• Indiana to Launch Educational Scholarship Accounts (ESAs)
• Study Shows Indianapolis Charter Schools Provide Quality Education for Students
• Indiana Legislation to Take Effect on July 1st
• Federal Bipartisan Gun Safety Bill Signed into Law
• Indiana Health Officials Report First Probable Case of Monkeypox
• Mark Cuban’s Drug Company Challenges Big Pharma Prices
• Important Dates

Indiana General Assembly Will Tackle Abortion Issues During Special Session

What’s new: Following the U.S. Supreme Court Friday ruling on the Dobbs case, Indiana Governor Eric Holcomb released a statement saying that the General Assembly will address the abortion issues during their special session that is set to begin on July 6th.

What they’re saying:

• Senate President Pro Team Rodric Bray released a statement saying, “Indiana has a strong record as a pro-life state, and I am pleased the Supreme Court ruled to return power to the states with regard to this important issue. With the final decision in hand, we can begin to formulate a policy that is right for Indiana that protects unborn children and cares for the health and lives of mothers and their babies. I expect we will be able to work on that in the upcoming special session.”

• Indiana House Democratic Leader, State Rep. Phil GiaQuinta, also released a statement saying, “Today’s decision rolls back nearly half a century of reproductive health care protections, and House Democrats are prepared to fight whatever regressive legislation House and Senate Republicans put forth. We still believe that medical decisions – and especially serious and difficult ones like abortion – are best made between a woman and her doctor, not by the government.”

The bottom line: It’s a contentious topic, and while special session is set for July 6th, we anticipate that it will last a couple weeks. (IndyStar)

Gas Price Hikes Put Pressure on Federal and State Governments

The details: Rising gas prices is not just a Hoosier-issue, but a real problem that people all over the nation (globe, if we’re being honest) are facing today. The White House has shown renewed interest in focusing on how to get prices down. President Biden has called for Congress to suspend the Federal gas tax, and other Administration officials are not ruling out restrictions on energy exports.

What they’re saying: "With the world now focused on the risks for high and rising energy inflation, the likelihood of policy correction is rising," wrote Goldman Sachs analysts in a client note this week, referring to government efforts to stimulate oil production.

Yes but: Indiana is set to see another increase in the state’s gasoline tax on July 1. According to the Indiana Department of Revenue, the state's residents will pay 62 cents per gallon in taxes on gasoline, the state Department of Revenue announced Monday — another jump from June's record-high 56 cents per gallon.

Go deeper: Indiana Democrats have been calling for a suspension of the gas tax since March, but Republicans say the gas tax should remain in place to fund the state's highway construction program and argue that even if the state gas tax was suspended, there is no guarantee that pump prices would be cut by the full amount.

The bottom line: There are a thousands ways to slice this pie, and Indiana will get a chance to address price hikes in the upcoming special session on July 6th. (Axios) (US News)

Governor Holcomb's South Shore Line Project Moves Forward

What’s new: Governor Holcomb announced on Monday, June 20th that construction on Northern Indiana Commuter Transportation District’s (NICTD) South Shore Line is underway. This initiative is a prominent piece of the Governor’s Next Level Agenda and is one of the largest public transit investments in Indiana’s history. The project, double-tracking the South Shore Line from Michigan City to Gary, will add nearly 18 miles of new track over the 26-mile corridor.

What they're saying: U.S. Senator Todd Young called the project game-changing, saying “Today’s groundbreaking is the product of years of hard work to make the South Shore Line Double Track Project a reality. This game-changing infrastructure priority will benefit Hoosiers in Northwest Indiana for years to come, with an expected economic impact of $5 billion by 2048 and the creation of more than 6,000 new jobs. Thank you to NICTD, Governor Holcomb, Congressman Visclosky, and the countless community leaders who played a role in helping us reach this pivotal moment.”

What’s next: Construction is expected to finish in early 2024 with passenger service starting later in the year. (WBIW)

United Way of Central Indiana Hires DWD Commissioner, Fred Payne, as President and CEO

What’s new: Fred Payne, Commissioner of the Indiana Department of Workforce Development, will step down from his role at the agency and join the United Way of Central Indiana as President and CEO. Payne was appointed as the DWD Commissioner in 2017, and his last day with the agency will be on July 8th.

What’s next: There has yet to be an announcement on who will replace Payne as Commissioner. Stay tuned. (IBJ)

Labor Shortages Harming Indiana Dairy and Livestock Industries

What’s new: Labor shortages and price increases have become increasingly problematic in today’s economy, and the livestock and dairy industry is no exception. Last Tuesday, leaders from the Indiana farm and business industry met to discuss these issues, and urged Congress to pass bipartisan, common sense immigration solutions that address our nation’s crippling labor shortage and grow our economy. 

Why it matters: These issues go hand-in-hand. The livestock and dairy industries are highly dependent on immigrant labor, and with no access to year-round visa programs, they are facing severe supply chain issues, which trickles down to higher prices.

What they’re saying: Indiana Dairy Producers President Steve Obert noted how Indiana’s dairy farmers face a lack of skilled workers to milk their cows. “Immigrant labor is estimated to provide care for and milk nearly 79 percent of the U.S. milk supply,” said Obert. “It’s estimated that if we lost our immigrant workers, milk prices would double, costing the U.S. economy nearly $32 billion. The H-2A program was created in 1986 for seasonal workers and is geared toward vegetable and fruit farms. But our livestock industry has no year-round source for workers. This has deep implications for our farms.”

The bottom line: There’s more work to be done.

• In 2021, the U.S. House of Representatives passed the Farm Workforce Modernization Act with bipartisan support, including support from Congressman Jim Baird (R-IN).
• In the Senate, Senators Mike Crapo (R-ID) and Mike Bennet (D-CO) have taken the lead on improving the FWMA and moving the process forward. (ABIC)

Charitable Giving Hits Record High, but Inflation Draws Down Impact

What’s new: A recent report looking at American philanthropy revealed that charitable giving in the United States reached a record $485 billion in 2021, though the increase did not keep pace with inflation. The Giving USA report says donations in 2021 were 4% higher than the record-setting $466 billion contributed in 2020. But, when adjusted for inflation, they were down 0.7%.

Why it matters: This report shows that charitable giving is not growing as fast as prices are increasing, and many not-for-profits are feeling the effects of inflation on their organizations. While some organizations like the civil rights groups have gained a lot of momentum during 2020, others have not.

What they’re saying: Laura MacDonald, Chair of the Giving USA Foundation, gave a statement saying “Everyday households are not participating in charitable giving to the extent that they did a decade or two ago, and that’s concerning. That’s troubling.” She noted some large donors have transitioned to giving through donor-advised funds, a type of charitable investment account, or family foundations and those donations would be counted in other categories. (IBJ)

Indiana to Launch Educational Scholarship Accounts (ESAs)

What’s new: In 2021, the Indiana General Assembly passed legislation that created the Indiana Education Scholarship Account Program (INESA).

• INESA, administered through the Treasurer of State’s office, provides Hoosier special-education students with access to the educational environments and services that best meet their unique - and often challenging - learning needs.

• In 2022, the legislature passed improvements to the program, moving the student application deadline to align with the school year in an effort to allow parents enough time to make important decisions regarding their child’s education.

The details: INESA allows parents of special-needs students to use funds from the program to customize their child’s educational experience. Families who participate receive 90% of their state education dollars and all their child’s special-education dollars via a government-authorized scholarship account for educational needs. Parents and guardians of participating students may spend dedicated scholarship money on approved educational programs, therapies, services, transportation, tuition, and fees at a participating non-public school, as well as other expenses related to their child’s education.

What’s next: Student applications for the INESA program will open on June 27, 2022. Until the application becomes available, parents of special needs students can research this new program online or contact the Indiana Treasurer of State’s Office with questions.

Study Shows Indianapolis Charter Schools Provide Quality Education for Students

The details: A study by the Center for Research on Education Outcomes (CREDO) at Stanford University recently released data on the results Indianapolis charter school students are seeing.

The Mind Trust in Indianapolis shared some findings from the latest CREDO report, and show significant learning gains for Indy area charter and innovation schools. Some highlights include: 

• Charter schools to all schools state average comparison: Indy charter school students achieved growth equivalent to 12 days of additional learning in (ELA) and 47 days of additional learning in math relative to students across Indiana. 

• Innovation schools to district-run schools comparison: Innovation Network Schools (most of which are also charter schools) achieved growth equivalent to 38 days of additional learning in ELA and 47 days of additional learning in math relative to students in Indianapolis traditional public schools.

Go deeper: These gains are also reflected within historically marginalized students in charter and innovation schools:

• Black students who attend charter schools achieve an additional 86 days of learning in reading and 144 days of learning in math compared to Black students in direct-run IPS schools.

• Hispanic students who attend charter schools achieve an additional 73 days of learning in reading and 109 days of learning in math compared to Hispanic students in direct-run IPS schools.

The bottom line: These results from the CREDO study show that significantly more students are getting a better education because of the growth of these school options in Indianapolis. (Mind Trust)

Indiana Legislation to Take Effect on July 1st

What’s new: There are several pieces of Indiana legislation that go into effect on July 1, 2022, while other legislation went into effect earlier this year. A summary of those laws, and their effective dates can be found here.

Federal Bipartisan Gun Safety Bill Signed into Law

What’s new: This past Saturday, President Biden signed the most significant federal gun legislation in nearly thirty years after it received bipartisan support in Congress last week. The bill is now law.

What they’re saying:

• Biden stated that the bill does not do everything he wanted, but believes the legislation will save lives.

• A group of bipartisan Senators released a statement saying, "Our plan increases needed mental health resources, improves school safety and support for students, and helps ensure dangerous criminals and those who are adjudicated as mentally ill can’t purchase weapons."

The bottom line: The law includes enhanced background checks for those under 21, funding for mental health and school safety, incentives for states to implement "red flag" laws and limits on the "boyfriend loophole." (Axios)

Indiana Health Officials Report First Probable Case of Monkeypox

What’s new: Last week, state health officials in Indiana reported a probably case of monkeypox. Officials said were conducting contact tracing, and the patient remains isolated.

The details: Monkeypox spreads through close contact with an infected animal or person, generally through lesions, body fluids, contaminated materials and respiratory droplets. Those droplets can only travel up to a few feet and usually require prolonged contact for transmission. Patients usually first present symptoms within one to two weeks following infection and first experience symptoms like fever, headache, muscle aches, chills and exhaustion.

What they’re saying: Indiana State Health Commissioner, Dr. Kris Box, released a statement saying, “The risk of monkeypox among the general public continues to be extremely low. Monkeypox is rare and does not easily spread through brief casual contact. Please continue to take the same steps you do to protect against any infection, including washing your hands frequently and thoroughly, and check with a healthcare provider if you have any new signs or symptoms.” (The Hill)

Mark Cuban’s Drug Company Challenges Big Pharma Prices

The details: At the start of this year, Mark Cuban launched an online company, Cost Plus Drug Company, which seeks to simplify the convoluted supply chain for drugs and offer savings to consumers. It offers commonly used generic drugs at a 15 percent markup, plus a $3 dispensing fee and $5 shipping fee. It does not accept insurance, meaning patients pay out of pocket. 

Why it matters: A study from researchers at Brigham and Women’s Hospital in Boston, published in the journal Annals of Internal Medicine, suggests inefficiencies in the way Medicare currently pays for generic drugs. The study found that the simplified model offers significant savings. The $3.6 billion in savings amounts to 37 percent of the $9.6 billion that Medicare spent on the 89 drugs examined in the study. There were savings to be had on 77 of those drugs, and 12 with no savings. 

What they’re saying: Cuban alerted the Administration, via tweet, that he wants to work on a solution, tweeting to President Biden, “Have your people call my people and let’s get this done.”

The bottom line: High drug prices have been a topic of discussion for years, and it looks like there is at least one person who is ready to go head-to-head with big pharma to combat the problem. (The Hill)

Important Dates

Wednesday, June 29th @ 10am - State Budget Committee Meeting

Wednesday, July 6th @ TBD - Special Session

Wednesday, July 13th @ 9am - State Board of Education Meeting

Wednesday, July 27th @ 10am - Medicaid Advisory Committee Meeting